South Korean firms plan to expand investment in Vietnam
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South Korean conglomerates, including SK Group, Samsung, and LG, are expanding their investments in Vietnam, focusing on energy, high-tech manufacturing, and sustainable development.
SK Group, the second-largest conglomerate in the country, has planned to invest in three LNG-fueled power projects in Vietnam, aiming to develop a new energy hub integrating artificial intelligence development, hydrogen, logistics, eco-friendly agriculture, and innovation in the Southeast Asian nation.
In meetings with Party General Secretary To Lam and Prime Minister Pham Minh Chinh last week, SK Group Chairman Chey Tae Won said his firm is actively seeking opportunities to enhance support for and cooperation with Vietnam to promote long-term, sustainable economic growth.
SK has already invested around $3.5 billion in Vietnam. However, most of the sum is indirect investment, involving equity purchases worth hundreds of millions to over a billion dollars in major companies such as Vingroup, Masan, Pharmacity, and Imexpharm.
The Ecovance high-tech biodegradable materials plant in the northern port city of Hai Phong is the first direct investment project of SK in Vietnam. SK is investing in the project through a subsidiary at the DEEP C Industrial Park, with a total investment of $500 million. The project targets the rapidly growing global biodegradable materials market.
Chey stated SK considers Vietnam a priority partner in its investment strategy in the coming time, adding the firm is eager to participate in Vietnam’s green transition, especially in energy and industry, thus contributing to the Southeast Asian nation’s goal of cutting emissions to net zero by 2050.
Meanwhile, Samsung Display of South Korea has been approved to inject an additional $1.2 billion into its existing next-generation display manufacturing plant in the northern province of Bac Ninh. This investment aims to establish Vietnam as a key production hub for Samsung’s next-generation displays.
“SK is investing in the project through a subsidiary at the DEEP C Industrial Park, with a total investment of $500 million.”
In a recent meeting with Prime Minister Pham Minh Chinh, General Director of Samsung Vietnam Choi Joo Ho, and his successor, Na Ki Hong, stated that, in addition to its traditional investment areas, Samsung will expand its investments in Vietnam into new sectors.
Samsung has invested over $23 billion in Vietnam, and continues to inject billions of dollars annually. With its new plans, more billion-dollar projects are likely to be added to Samsung’s investment portfolio in the Southeast Asian nation.
Besides Samsung, LG has also been steadily increasing its investments in Vietnam. Last year, it poured billions of dollars into the LG Display project in Hai Phong. Looking ahead, LG plans to further expand its investments in the country.
Other giants such as Hyosung, Amkor, and Hana Micron are also looking to expand their investment and business in Vietnam.
After investing $520 million, Amkor decided to inject an additional $1.07 billion into its plant in Bac Ninh, 11 years ahead of its schedule. Recent reports indicate that Amkor’s plant is expected to triple its production capacity in the near future.
South Korea’s registered investment in Vietnam hit $1.25 billion in January alone, much higher than the figure of $93.46 million recorded in January last year.
South Korean investors have poured $92 billion into Vietnam, ranking first among countries and territories investing in the Southeast Asian nation, statistics showed as of January 2025.
Questions & Answers
Q.What is the primary focus of SK Group's new investment plans in Vietnam?
What is the primary focus of SK Group's new investment plans in Vietnam?
SK Group plans to invest in three LNG-fueled power projects in Vietnam. This aims to develop a new energy hub, integrating AI, hydrogen, logistics, eco-friendly agriculture, and innovation within the country.
Q.Which of SK Group's investments in Vietnam is its first direct project?
Which of SK Group's investments in Vietnam is its first direct project?
The Ecovance high-tech biodegradable materials plant in Hai Phong is SK's first direct investment. SK is investing $500 million in this project through a subsidiary at the DEEP C Industrial Park.
Q.How much additional investment has Samsung Display committed to its plant in Bac Ninh?
How much additional investment has Samsung Display committed to its plant in Bac Ninh?
Samsung Display has been approved to inject an additional $1.2 billion into its existing next-generation display manufacturing plant. This aims to establish Vietnam as a key production hub for its displays.
Q.What was the total registered investment from South Korea in Vietnam during January this year?
What was the total registered investment from South Korea in Vietnam during January this year?
South Korea's registered investment in Vietnam reached $1.25 billion in January alone. This figure is significantly higher than the $93.46 million recorded for January last year.
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